Suppliers Are More Likely to Be Powerful Relative to the Firms

question 45

Multiple Choice

Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:

• A) differentiation among existing suppliers is high.
• B) the suppliers' industry is highly fragmented.
• C) existing suppliers lack economies of scale.
• D) suppliers' goods or services cannot be substituted effectively.
• E) cost advantages independent of size are negligible.

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Definitions:

Mutations

Changes in the DNA sequence of an organism's genome, which can result in variation within the population.

Doomsday Machine

A hypothetical device or concept often associated with nuclear warfare, designed to automatically trigger an apocalyptic retaliation if a certain attack is detected.

Spurious Information

Information that appears to be valid and relevant to a decision or analysis but is actually false and misleading.

Negative Framing Effect

A psychological phenomenon where people make decisions based on the presentation of negative outcomes rather than positive ones, even when both presentations convey the same information.